What was witnessed in the Precious Metals today was a "washout". The weak hands are now undoubtedly OUT of Gold and Silver. Those that sold today sold into eager and grateful hands. It should be noted, and highlighted, that this mornings chaos in both metals stopped dead and reversed hard at their respective 200 DAY moving averages. This was a big money buying opportunity. This was exactly what this metals market needed.
What was the cause of this metals meltdown this morning? More lies, spin, and a complete lack of understanding regarding the systemic risks that the financial system now faces. It continues to amaze, and disturb, me that every piece of news that is Gold positive is ignored and the metals sold. Where I come from it's called a scam.
There is no bigger joke, no bigger scam, no bigger crime in the history of humanity than that which is being perpetrated on America and the World today. Our way of life is literally being stolen from us as we sit around oblivious to it all. Each and every day we are inundated with headlines "trying" to warn us of the disaster our fearless leaders and government regulators have created to destroy our freedoms and wealth, and steal it all for themselves. And each and everyday Americans go on sitting in front of their big screen TVs believing they are rich. America is broke! Not just financially, but in total. The entire system is broken. The government is corrupt and full of con men. The banking industry is corrupt and full of con men. The press is not free, but run by the corrupt government. The infrastructure is dated and dilapidated. The auto industry has been crushed. The nations manufacturing base has been destroyed and shipped overseas. Debt is all that remains. Debt will be this nations legacy in the history books, and it's citizens slaves to their debt for generations to come.
SEC extends restrictions on short-selling
Federal regulators on Tuesday extended through mid-August a temporary order banning a certain kind of short-selling of the stocks of mortgage finance companies Fannie Mae, Freddie Mac and 17 large investment banks.
The Securities and Exchange Commission said the ban on so-called "naked" short selling will be in effect until 11:59 p.m. EDT on Aug. 12 and will not be extended.
http://biz.yahoo.com/ap/080730/sec_short_selling.html
Temporary order banning naked short-selling. LOL, naked short selling has been illegal since the 30s. This release claims the "ban" will not be extended beyond August 12. Could the lift-off in Gold then be scheduled for August 13th? Isn't it interesting that the "ban" on naked short-selling is ONLY on the banks and institutions that "borrow from the Fed"?
Borrow from Fed and you get protection against shorting
NEW YORK -- The U.S. Securities and Exchange Commission extended an emergency limit on short sales in shares of Freddie Mac, Fannie Mae, and 17 brokerages as it prepares broader rules to thwart stock manipulation.
The SEC pushed back expiration of its ban on so-called naked short sales of the firms' stocks to Aug. 12, the Washington-based agency said in a statement yesterday. The order aims to keep traders from driving down financial stocks after Bear Stearns Cos. and IndyMac Bancorp Inc. collapsed amid rumors they were faltering.
The emergency order, focused on companies whose collapse might expose the U.S. government to losses, gives regulators time to weigh wider restrictions. The SEC said yesterday it plans to collect data to measure the impact of the rule and will examine additional proposals to curb short sales.
http://gata.org/node/6461
Central banks extend emergency credit; rate hikes less likely
WASHINGTON -- The U.S., European, and Swiss central banks on Wednesday extended emergency lending facilities for investment banks and expanded other liquidity programs to ease credit market strains that have weighed on the global economy for nearly a year.
The U.S. Federal Reserve said it was prolonging until Jan. 30 the emergency credit facility for primary dealers that had been due to expire in mid-September.
The Fed said it acted "in light of continued fragile circumstances in financial markets," and said it would close the lending program once it determined credit market conditions were no longer "unusual and exigent."
Some analysts said the latest action suggested the Fed would be loathe to raise interest rates any time soon and interest-rate futures showed traders trimming back bets on the Fed raising rates this year.
http://gata.org/node/6460
So..., I guess it would be safe to say that the "credit crisis" is far from over? Geeze, I swear they just told us that it was over... How do you spell inflation? How do you spell LOTS of inflation. Strong Dollar, LOOOOOOOOOOOOOOOL. And people actually accepted this "breaking news" this morning as good and Dollar positive. The blind leading the blind. What a horror story.
The ADP employment survey
The ADP employment survey, a traditional gauge of nonfarm payroll figures, was released Wednesday. Joe LaVorgna, chief U.S. economist at Deutsche Bank, was hesitant to put much stock in the report. "Since last November, the average forecast miss on private payrolls using the ADP survey has been 116,000," he said, adding that between March and May, the ADP missed the mark by an average of 109,000.
http://www.forbes.com/markets/2008/07/29/briefing-outlook-gdp-markets-equity-cx_cg_0729markets39.html
Hey now, that's the kind of track record that just makes you want to go out and buy the US Dollar doesn't it? I guess you'd have to say the stock markets over reacted a bit to that news yesterday.
I added up the "initial claims" for unemployment over the first four weeks of July. The number in total was shocking. The Initial Jobless Claims released by the US Department of Labor is a measure of the number of people filing first-time claims for state unemployment insurance. The toal number of people filing "first-time claims" over the first four weeks of July was 1,530,000. Remember that numer when the non-farm payrolls number is rolled out Friday morning at 8:30 AM.
Government announces plans to borrow $27 billion
Those plans include raising $27 billion by selling a new 10-year note and a new 30-year bond at the regularly scheduled quarterly auctions to be held next week. The government needs to borrow $171 billion during the current July-September quarter, the second highest quarterly borrowing total on record.
The increased borrowing needs reflect the exploding federal budget deficit which is projected to more than double in size this year and to hit an all-time high of $482 billion in the 2009 budget year.
The administration released the new deficit forecasts on Monday. It blamed the surge on the sagging economy and the effort to keep the country from falling into a deep recession by mailing out 130 million economic stimulus payments.
http://biz..yahoo.com/ap/080730/federal_borrowing.html
So the government blamed the deficits on themselves? Write that down. If an exploding federal deficit is "good" for the Dollar, it's news to me. I guess it was good for stocks, they were up again today.
Oil jumps over $4 on surprise drop in gas supplies
NEW YORK (AP) -- Oil prices soared over $4 a barrel Wednesday, halting a dramatic two-week slide after a surprise drop in U.S. gasoline supplies fed speculation that record fuel prices aren't keeping Americans off the roads.
The Energy Information Administration said in its weekly inventory report that U.S. gasoline supplies fell by 3.5 million barrels last week. Analysts surveyed by energy research firm Platts expected gas supplies to increase by 400,000 barrels. U.S. crude stockpiles also fell by 100,000 barrels last week, less than the 1.3 million barrels analysts had predicted.
The report gave some traders reasons to believe that crude's slide was overblown and that the drop in gas supplies mean prices have fallen enough to nudge Americans back onto the roads.
The surprise drop in gas supplies suggests record oil prices haven't curbed U.S. fuel demand to the extent that some energy market experts had anticipated after crude spiked above $147 a barrel earlier this month.
http://biz.yahoo.com/ap/080730/oil_prices.html
Where is all this demand destruction for Oil we keep having thrown in our faces "explaining" the recent drop in Oil prices. People, nothing goes straight up, not even Oil. Any lessening demand in the US will be met by increasing demand in China, India and Russia. Only a fool believes Oil prices are going to plummet back to $60 a barrel. Oil is going through a technical correction /consolidation. The entire Commodity Sector is because of it. Strong Dollar? LOL! If you've read this far, you know that's a crock of donkey dung.
The following essay is an absolute MUST READ. This is a rare "in a nutshell" piece that should put the entire financial collapse we face into complete perspective. If this essay does not convince you to buy and HOLD Gold and Silver, nothing ever will. Please read it in it's entirety at the link below.
The Con In Central Bankers’ Confidence
by Darryl Robert Schoon
Rising gold prices are a cold sore on the lip of central bankers. In the world of paper money, it’s a clear sign something’s not right
Central bankers are the keepers of the keys to the kingdom. The kingdom, however, is on the edge of bankruptcy and in danger as never before. Comparisons are now being made to the Great Depression of the 1930s. The comparisons, however, are just that.
In some ways, the situation is similar. In many ways, it is not. In a very fundamental way, the conditions are much worse. The systemic strains on the global financial system are today much more profound than even during the Great Depression.
The Great Depression of the 1930s was unique in the history of capital markets built on debt-based money, sic capitalism. Until the creation of the Federal Reserve System, the US economy had been a savings-based, not debt-based, economy. The difference between the two, although rarely understood, is profound
The price paid for credit-based expansion is debt. Increasing the debt-based money supply increases the amount of debt; and, over the naturally limited life of a debt-based economy, the constantly increasing and compounding levels of debt will grow until the economy collapses.
Compounding debt, the wellspring of bankers’ profits, will eventually destroy the economy on which it lives. The time it takes to do so is dependent on the strength and productivity of the underlying economy.
No economy, however, no matter how strong initially, can out run the constantly compounding debt of credit-based money—not even the United States.
Modern economics is a shell game, a 300 year old confidence game designed to hide the fact that bankers’ credit replaced real money, credit created out of thin air by private bankers and public government that leaves compounding debt, and ultimately economic destruction, in its wake.
Recently, because of the increasing collusion between bankers and government, the line between private banking and public government is gone. They are now one and the same—only the union hasn’t been publicly announced because of anticipated opposition to the now consummated marriage.
Central bankers are modern day confidence men who have so embedded themselves into the fabric of everyday commerce that people are convinced they need credit in order to survive; like Elvis Presley in his final days believed he needed prescription pills to live.
Just as Dr. “Nick”, Elvis Presley’s pill doctor, is responsible for killing Elvis with his over-prescription of drugs, Dr. Bernanke, the current US credit provider, and his predecessor Dr. Greenspan will be remembered for their fatal over-prescribing of central bank credit to the US and world economy. Too much of a good thing is and has always been in the end, a bad thing.
http://news.goldseek.com/GoldSeek/1217430000.php
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